Spring Budget reactions - Barret Kupelian transcript
Overall, this was a well-rounded Budget.
A more positive economic backdrop has allowed the Chancellor to shift the focus from stability to growth.
As natural gas prices fall, the big positive is the anticipated drop in inflation to below 3% by the end of the year.
For businesses, less inflation pressure will help to curb any further steep rises in payroll and borrowing costs.
The Bank of England’s policy rate is likely to peak at a significantly lower rate than the 5% assumed in the Autumn Statement. This is good news for homeowners and businesses alike.
The fallback in inflation will also marginally ease the squeeze on households facing an otherwise record decline in living standards. Further support includes the extension of the energy price guarantee.
The big question is how much of a growth boost we’re likely to see as a result of this Budget.
The Chancellor has framed his plans around the four Es of enterprise, education, employment and everywhere, that he believes are key and critical in unlocking our national potential.
The focus on the participation gap in the economy is especially welcome. It shows that the Government is listening and responding to business concerns. But measures such as increased childcare support will take some time to materialise and feed into the growth numbers.
There are also welcome support measures to support R&D and investment in fast growth sectors.
What we’re not seeing however, is a grand strategy to boost productivity and the overall resilience of the economy on a par with the US Inflation Reduction Act [pause] or EU’s Green Deal Industrial Plan.
So yes, there is relatively better news on the short-term economic outlook. There is also a lot to commend in the Budget measures. But this was not, and probably wasn’t meant to be, a game-changing Budget.
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